All Forum Posts by: Murray Reginald

DSCR loan is a great option to purchase an investment property without having to worry about the exiting debt from your first mortgage. Especially if you plan to build your portfolio because you can close under a LLC too. Really there are options you have available. It's best to talk with a lender, map out your real estate goals, and have them build a financial game plan for you to make sure you're set up with the right loan product to build wealth.

Happy hunting!

HI Vanessa,

Thanks for the tip, I spoke with a lender (DSCR) and they confirmed what you said however, I will need to provide them the property information to proceed with the loan. My credit score has to be 680 and I have a 815 so I should be good, thanks again for your thoughts. The lender also suggested I do AirB&Bs and Multi Family Properties to create more cash flow, which is my goal.

0 Votes

Houston, Texas

Quote from @Justin Hammerle:

@Murray Reginald - if you are occupying the property you generally have the same financing available for MFH up to 4 units as you would with a SFH. If you are not occupying the property you will need to seek out conventional financing with higher down payments. If you don't qualify for second conventional loan; you could consider selling your existing home and rolling any profit into a MFH where you occupy one of the units and rent the other.

That is a great idea, thanks!!!

0 Votes

Houston, Texas

Quote from @Lawrence Potts:

Quote from @Murray Reginald:

Hello All,

I really like the idea of house hacking however, I purchased a new home 3 yrs ago, I am looking for additional cash flow and was thinking of a Multi Family properties. Is there a work around to make this happen? or should I stick to Single Family properties? I love the idea of Multi Family properties but I am not sure about living on the property and not sure what to do with my home. I am educating myself before I pull the trigger and would like to know your thoughts. I am highly excited about attending my first REIA in Houston on 18APR2023 and looking forward to meeting like minded people.

Great question!

I would suggest talking to a lender to see if you even qualify. What they’ll probably want to see is either you selling your home or renting it out to offset that mortgage payment. It may be negatively effecting your DTI to buy if you don’t remove the payment or offset it with rental income.

If I were in your shoes, I’d keep it as a rental unless I had A LOT of equity in it. Even if I had that much equity in it, I’d see if I can get a HELOC and use that as a down payment.

You have to go with 3.5% FHA on a multifamily 2-4 unit to owner occupy, otherwise you’re going conventional with significantly more down. However, FHA is very picky in making sure they are not being used as a investment product. They could determine that since you already own a SFR that you can’t go multifamily because they can see you trying to buy it as an investment (the goal of FHA is to make homeownership more affordable). That’s why I think you need to talk to a lender that has house hacked or owns a lot of property.

Either way, if you can get into a multifamily, I say do it. Utilizing that income allows you to scale quickly. If you can’t, go SFR. But I love the strategy of house hacking and I think if anything it’s going to help buffer you during a big recession/lose your job/sky is falling.

Hope that helps!

Thanks Lawrence, I was actually thinking about renting my home to dive into the house hacking however, I heard that I could possibly do a DSCR Loan for investment properties or would this only work for Single Family Properties.

0 Votes

Houston, Texas

Hello All,

1 Vote

Houston, Texas

Quote from @Jevon Shaw:

I see you're in Houston. In Houston proper, it is possible to find something sub $100k, but as Theresa stated, it will probably be a low-quality rental

Thanks I see you are in DFW, I heard DFW is a great market.

0 Votes

Houston, Texas

Quote from @Murray Reginald:

Quote from @Theresa Harris:

Find out how much you can borrow from the bank for a mortgage. It some areas it may be hard to find a good house for $100K. Don't just look at the return, but also the type of home. The cheapest house in town is likely to be in a not so good area and you will have problem tenants, higher turnover and higher costs.

Thank you!!!

0 Votes

Houston, Texas

Quote from @Theresa Harris:

0 Votes

Houston, Texas

Hello All,

I am highly motivated in becoming an investor, I've been educating myself with Brandon Turner's book on The Book Rental Property Investing, I could be jumping the gun without completing the book however, my question is, can I find properties in the price range of 100K to invest with a cash on cash return in a descent area with a good cash flow, my concern is the down payment I am not wanting to spend no more than 25-30K for a down payment. Is this possible or am I missing something.

0 Votes

Houston, Texas

@Aaron K. That is my plan to pay down the small loan first to increase our cashflow.

1 Vote

Hello All, I am really excited about what me and my wife are working on, and that is financial freedom or passive income as an investor. This is our current situation: - Cashflow: $2500 monthly - Mortgage: $4000 monthly $303k big loan $56k small loan We are using our cashflow to pay an extra $2500 every month on the mortgage principal to keep the bank from robbing us blind. My question is, should we even be looking at investment properties right now or should we pay off our mortgage which will be in about 6-7 yrs.? For emergencies we have a line of credit established $15k. I don’t want get in over my head so I am reaching out for advice. My plans are to pay the mortgage off in 6-7 yrs and get a HELOC $200k to $400k and start investing in rental properties maybe with 2 rental properties starting out the first year and then 2 more the next year. Please let me know if I should reconsider my plans or does it sound solid.

0 Votes

All Forum Posts by: Murray Reginald

Murray Reginald has started 29 posts and replied 74 times.

Post: House Hacking Multi Family Properties vs. Single Family Properties

Post: House Hacking Multi Family Properties vs. Single Family Properties

Post: House Hacking Multi Family Properties vs. Single Family Properties

Post: House Hacking Multi Family Properties vs. Single Family Properties

Post: What price point should I look for?

Post: What price point should I look for?

Post: What price point should I look for?

Post: What price point should I look for?

Post: Starting Out With First Property

Post: Starting Out With First Property